Croatia Enhances Financial Compliance with New Regulations
Simplifying Electronic Invoicing and Financial Reporting
As a member of the European Union, Croatia is committed to increasing financial transparency. To achieve this goal, the country has introduced several measures aimed at simplifying electronic invoicing and financial reporting for businesses.
Standardizing Government-to-Government Transactions
Croatia has implemented the Peppol model for government-to-government (B2G) transactions. This system requires suppliers to issue invoices in a standardized format using Universal Business Language (UBL) 2.1 or Peppol BIS. By doing so, the country aims to reduce errors and discrepancies associated with electronic invoicing.
Key Features of the Peppol Model
- Suppliers must use UBL 2.1 or Peppol BIS for government-to-government transactions
- Invoices are issued in a standardized format to simplify processing
- Reduced risk of errors and discrepancies
Implementing the FINA e-Račun System
For government-to-business (B2G) transactions, Croatia has mandated the use of the FINA e-Račun system. This platform provides a centralized infrastructure for electronic invoicing and financial reporting, making it easier for suppliers to comply with regulations.
Key Features of the FINA e-Račun System
- Centralized platform for electronic invoicing and financial reporting
- Simplifies compliance with regulations
- Enables efficient processing of invoices and financial reports
Business-to-Business Transactions
While there are no explicit requirements for suppliers to use standardized formats or systems for business-to-business (B2B) transactions, buyers will still need to obtain consent before receiving invoices electronically. This means that businesses must ensure they have the necessary systems in place to comply with this requirement.
Key Considerations for B2B Transactions
- Suppliers are not required to use standardized formats or systems
- Buyers must obtain consent before receiving electronic invoices
- Businesses must have systems in place to comply with consent requirements
Electronic Signatures and Archiving Requirements
One area where Croatia’s regulations fall short is the use of electronic signatures. Unlike some other EU countries, Croatia does not require the use of e-signatures for financial transactions, which could potentially create difficulties for businesses operating across borders.
Key Considerations for Electronic Signatures
- Croatia does not require the use of electronic signatures
- Potential difficulties for businesses operating across borders
- May impact compliance with regulations in other countries
Suppliers will need to retain invoices and supporting documentation for a period of 11 years. While this is in line with many other European countries, it’s worth noting that archiving data abroad may be subject to certain conditions.
Key Considerations for Archiving Requirements
- Suppliers must retain invoices and supporting documentation for 11 years
- May be subject to conditions when archiving data abroad
Conclusion
Croatia’s new regulations are designed to make it easier for businesses to comply with financial reporting requirements. By introducing standardized formats and systems for electronic invoicing, the country aims to reduce errors and discrepancies, and improve transparency across the financial sector.